Professional Documents
Culture Documents
to
June 2019
Financial
Management
(FM)
syllabus and study guide This shows the breakdown of the main
capabilities (sections) of the syllabus
into subject areas. This is the blueprint
Overall aim of the syllabus
for the detailed study guide.
This explains briefly the overall objective
Approach to examining the syllabus
of the syllabus and indicates in the
broadest sense the capabilities to be
This section briefly explains the
developed within the exam.
structure of the examination and how it
is assessed.
Relational diagram of linking
Financial Management (FM) with
Study Guide
other ACCA exams
This is the main document that students,
This diagram shows direct and indirect
education and content providers should
links between this exam and other
use as the basis of their studies,
exams preceding or following it. It
instruction and materials. Examinations
indicates where you are expected to
will be based on the detail of the study
have underpinning knowledge and
guide which comprehensively identifies
where it would be useful to review
what could be assessed in any
previous learning before undertaking
examination session. The study guide is
study.
a precise reflection and breakdown of
the syllabus. It is divided into sections
Main capabilities
based on the main capabilities identified
in the syllabus. These sections are
The aim of the syllabus is broken down
divided into subject areas which relate to
into several main capabilities which
the sub-capabilities included in the
divide the syllabus and study guide into
detailed syllabus. Subject areas are
discrete sections.
broken down into sub-headings which
describe the detailed outcomes that
Relational diagram of the main
could be assessed in examinations.
capabilities
These outcomes are described using
verbs indicating what exams may
This diagram illustrates the flows and
require students to demonstrate, and the
links between the main capabilities
broad intellectual level at which these
(sections) of the syllabus and should be
may need to be demonstrated
used as an aid to planning teaching and
(*see intellectual levels below).
learning in a structured way.
Syllabus rationale
The Corporate and Business Law exam Exams from June 2019 onwards
is a two-hour computer-based objective As part of our ongoing exam
test examination for English and Global, development, from June 2019
and available as a paper based version candidates will no longer receive seeded
for all variants. content. Processes and systems are in
place to ensure every question a
The other Applied Skills examinations candidate receives is fair and
(PM, TX-UK, FR, AA, and FM) reliable. Due to the removal of this
contain a mix of objective and longer content, the exam duration will change
type questions with a duration of three from 3 hours 20 minutes to 3 hours (this
hours for 100 marks; these questions does not include reading time).
directly contribute towards the candidate
result. These exams are available in Paper-based exams
computer-based and paper-based
formats. Prior to the start of each exam For paper-based exams 15 minutes are
there will be time allocated for students added to the three hours to reflect the
to be informed of the exam instructions. manual effort required as compared to
computer-based exams. All paper-
Computer-based exams based and computer-based questions
have been subject to the same quality
For the Applied Skills (PM, TX-UK, FR, assurance process. There will be time
AA and FM) computer-based exams awarded by the invigilator to read the
candidates are given an extra 10 exam instructions.
minutes to read the instructions prior to
the start of the exam. Additional content Strategic Business Leader is ACCA’s
may be included in the exam. This will case study examination at the Strategic
be dependent on which exam session Professional level and is examined as a
the candidate sits their exam. For more closed book exam of four hours,
information see below. including reading, planning and
reflection time which can be used
Exams from September 2018 – March flexibly within the examination. There is
2019 no pre-seen information and all exam
For these exams candidates will receive related material, including case
an extra 10 marks of objective test information and exhibits are available
seeded content (either five single OT within the examination. Strategic
questions OR five OT questions based
Guide to ACCA
Examination Assessment
ACCA reserves the right to examine
anything contained within the study
guide at any examination session. This
includes knowledge, techniques,
principles, theories, and concepts as
specified. For the financial accounting,
audit and assurance, law and tax exams
except where indicated otherwise,
ACCA will publish examinable
documents once a year to indicate
exactly what regulations and legislation
could potentially be assessed within
identified examination sessions.
This syllabus and study guide is designed to help with planning study and to provide
detailed information on what could be assessed in any examination session.
Aim
Main capabilities
On successful completion of this exam, candidates should be able to:
This diagram illustrates the flows and links between the main capabilities (sections)
of the syllabus and should be used as an aid to planning teaching and learning in a
structured way.
Rationale
3. Determining working capital needs 1. The nature and types of risk and
and funding strategies approaches to risk management
All questions are compulsory. The exam will contain both computational and
discursive elements.
Computer-based exams
* Prior to the start of the exam candidates are given an extra 10 minutes to read the
exam instructions.
Candidates are provided with a formulae sheet and tables of discount and annuity
factors.
Paper-based exams
Section C of the exam comprises two 20 mark questions. The two 20-mark
questions will mainly come from the working capital management, investment
appraisal and business finance areas of the syllabus. The section A and section B
questions can cover any areas of the syllabus.
Candidates are provided with a formulae sheet and tables of discount and annuity
factors.
c) Explain how government economic b) Explain the role of banks and other
policy interacts with planning and financial institutions in the operation
decision-making in business.[2] of the money markets.[2]
d) Explain the need for, and the c) Explain the characteristics and role
interaction with, planning and of the principal money market
decision-making in business of: [1] instruments:[2]
i) competition policy i) interest-bearing instruments
ii) government assistance for ii) discount instruments
business iii) derivative products.
iii) green policies
iv) corporate governance C. Working capital
regulation.[2] management
2. The nature and role of financial
markets and institutions 1. The nature, elements and
importance of working capital
a) Identify the nature and role of money
and capital markets, both nationally a) Describe the nature of working
and internationally.[2] capital and identify its elements.[1]
Order Quantity model and Just-in- i) the length of the working capital
Time techniques.[2] cycle and terms of trade
ii) an organisation’s policy on the
d) Discuss, apply and evaluate the use level of investment in current
of relevant techniques in managing assets
accounts receivable, including: iii) the industry in which the
i) assessing creditworthiness [1] organisation operates.
ii) managing accounts receivable [1]
iii) collecting amounts owing [1] b) Describe and discuss the key factors
iv) offering early settlement in determining working capital
discounts [2] funding strategies, including:[2]
v) using factoring and invoice i) the distinction between
discounting [2] permanent and fluctuating
vi) managing foreign accounts current assets
receivable.[2] ii) the relative cost and risk of short-
term and long-term finance
e) Discuss and apply the use of iii) the matching principle
relevant techniques in managing iv) the relative costs and benefits of
accounts payable, including: aggressive, conservative and
i) using trade credit effectively [1] matching funding policies
ii) evaluating the benefits of v) management attitudes to risk,
discounts for early settlement previous funding decisions and
and bulk purchase [2] organisation size.[1]
iii) managing foreign accounts
payable.[1]
D. Investment appraisal
f) Explain the various reasons for
holding cash, and discuss and apply 1. Investment appraisal techniques
the use of relevant techniques in
managing cash, including:[2] a) Identify and calculate relevant cash
i) preparing cash flow forecasts to flows for investment projects.[2]
determine future cash flows and
cash balances b) Calculate payback period and
ii) assessing the benefits of discuss the usefulness of payback
centralised treasury as an investment appraisal
management and cash control method.[2]
iii) cash management models, such
as the Baumol model and the c) Calculate discounted payback and
Miller-Orr model discuss its usefulness as an
iv) investing short-term. investment appraisal method.[2]
Amendments /additions
There have been no amendments to the Financial Management (FM) study guide from the 2017 –
2018 study guide.